The global market for near field
communication (NFC) chips is highly consolidated. The leading player NXP
Semiconductor accounted for about 55% of the market share in 2015 and going
forward too is predicted to retain its leading share. A few other prominent
names operating in the market are STMicroelectronics, Broadcom Corp., Texas
Instrument, Qualcomm Inc., and AMS AG. These companies have been resorting to
mergers, acquisitions, and partnerships to up the ante and expand their
footprints.

A report by Transparency Market Research
predicts the global market for near field communication (NFC) to clock a
phenomenal 26.0% CAGR between 2016 and 2024 to reach a value of US$10.62 bn by
2024-end from US$1.35 bn.

What
is primarily bolstering the global NFC market?

At the forefront of driving growth in
the near field communication (NFC) is the surging demand for consumer
electronics that use NFC chips. As NFC chips simplify user interfaces to
augment their applicability. This has led to their being used in various
electronic goods including smartphones. The latter is contributing the most to
the market at present.

Although the future of this market looks
bright, the complexity in product designs and the dearth of awareness among
consumers are expected to limit the uptake of NFC chips, which may create
hindrances for this market in the next few years, states the research report.

Which
application of NFC is driving its market?

Near field communication (NFC) chips find
application in smartphones, medical equipment, televisions, and cars. Among
them, the smartphone segment leads with a dominant share on account of their
rapidly proliferating market. The medical equipment and television segments are
also expected gain market share steadily in the years to come. While the growth
in the television segment is expected to be generated primarily by the rising
disposable income of consumers, the medical equipment segment is expected to be
bolstered by the infrastructural developments in the medical and healthcare
industry.

Geographically, North America holds a
dominating position in the market. In 2015, it accounted for a share of 34%. The
market in the region has been primarily bolstered by collaborations between big
banks and enterprises that help in tokenizing cards using NFC chips and the
introduction of NFC modes, such as reader modes, card emulation standards, and
peer-to-peer modes, by various semiconductor vendors.

In the years ahead, however, Asia
Pacific is predicted to gain greater market share than North America by
expanding at a 27.90% CAGR between 2016 and 2024. The burgeoning smartphone
market in the region will likely stoke stellar growth in the region. Europe is another
key market slated to expand at a healthy clip owing to a robust smartphones
market in Western Europe. Additionally, the increasing usage of other consumer
electronics products, such as refrigerators, television, and cameras, coupled
with the surging popularity of wireless technology will also bolster the
market.